January 23, 2015 - Ottawa, Ontario - Foreign Affairs, Trade and Development Canada
Foreign Affairs, Trade and Development Canada (DFATD) today issued the following statement:
The Canadian Press (CP) article does not present an accurate picture of the Government of Canada’s commitment to poverty reduction as it relies on inaccurate financial information published by the Parliamentary Budget Officer (PBO).
The PBO figures reported by CP suggest a spending reduction of 23 percent under the global poverty reduction through the international sustainable development outcome. Spending for this outcome includes transfer payment programs from across federal organizations, but the report limits analysis to DFATD’s transfer payment programs only. Moreover, the report suggests that the level of expenditures by the end of the second quarter is an accurate reflection of Canada’s disbursement plans for the full fiscal year, which is not the case.
As stated in DFATD’s Quarterly Financial Reports, the variance between the second quarter of fiscal years 2013-14 and 2014-15 is partially due to agreements ending in 2014, timing differences of disbursements, and decreased payments to international financial institutions.
Additionally, the PBO report contains a significant misrepresentation of global poverty reduction spending by this Government in its Figure 3.3, where it depicts historical figures from Main Estimates and planned numbers in DFATD’s 2014-15 Report on Plans and Priorities for Program 3.4, Global Engagement and Strategic Policy ($973.8 million) as our total spending in this area. The figures presented reflect just one of DFATD’s five program activities in support of poverty reduction. Overall, $3.023 billion is planned in 2014-15 for “reduction in poverty for those living in countries where Canada engages in international development” by DFATD alone, with additional spending planned by the other departments and agencies.
The timing of disbursements by federal organizations in support of Canada’s global poverty reduction through international sustainable development strategic outcome varies from one year to another. There are several factors that explain why a significant portion of international assistance disbursements takes place later in the last two quarters of the fiscal year. For example, many multilateral and global organizations operate on a fiscal year that corresponds with the calendar year, and payments that are scheduled for early in the calendar year often occur during Q4 of the Government’s fiscal year.
In addition, funding in support of Canada’s extraordinary response to humanitarian crises is often received by departments through Supplementary Estimates C in March, which delays disbursements to the last quarter of the fiscal year as it is dependent on the approval of appropriation bills. For example, a simple variation in the timing of the disbursement of Canada’s annual contribution to the Global Fund to Fight AIDS, Tuberculosis and Malaria could significantly skew DFATD’s quarterly financial reports. In summary, the level of expenditures by the end of the second quarter is not an accurate reflection of Canada’s ability to disburse its entire budget by the end of the fiscal year, nor does it represent a reduction on allocated budgets through Main Estimates.
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For further information, media representatives may contact:
Media Relations Office
Foreign Affairs, Trade and Development Canada
343-203-7700
media@international.gc.ca
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